Net income plummets 24.2% year-on-year
FedEx saw its income and revenue fall in the September-November period annually due to weakening demand.
The firm posted revenue of $22.8 billion during that period, which it referred to as the second quarter of 2023, according to a financial statement released Tuesday.
The figure is a decline of 3% from the $23.5 billion recorded during the same period last year.
Net income fell to $788 million from $1.04 billion, a massive 24.2% decline.
The company said the second quarter results were constrained by continued demand weakness, particularly at FedEx Express.
“The FedEx team moved with urgency to make rapid progress on our ongoing transformation while navigating a weaker demand environment,” said president and CEO Raj Subramaniam.
The company said it will cut an additional $1 billion and now expects to generate savings of approximately $3.7 billion in fiscal year 2023.
Despite the report, FedEx’s stock price was up 5.7% shortly after Wednesday’s opening bell on the New York Stock Exchange, climbing to $173.80 at 9.36 a.m. EDT, up from Tuesday’s close of $164.35.